Email this article to a friend

Pirate Capital, the activist hedge fund manager, is planning to soft-close its funds once the firmâs assets under management reach $2bn (â¬1.6bn).

The firm currently manages $1.7bn in assets. It is expected that the firm will reach the $2bn mark within the next one to two months. Pirate manages four event-driven hedge funds including its flagship Jolly Roger Fund.

The close is intended to give existing investors an opportunity to increase their investments in the funds. The close will also allow the firm to control overall growth by limiting contributions from new investors.

The funds are expected to re-open to new investors shortly after the short-closing.

"Our investment philosophy has always been to focus on returns and not [assets under management]. In terms of raising capital for the funds, we have accomplished what we set out to do. While there is no magic behind the $2bn number, it represents what I consider a level of comfortable critical mass for our strategy," said founder and portfolio manager Thomas Hudson Jr.

Pirate Capital is well-known for taking controlling positions in companies and trying to force changes within the companies to enhance shareholder value. Last week, Pirate fired off a letter to security company Brinks urging the company to put itself up for sale.

Pirate Capital, which owns a near 9% stake in Brinks, said the company could sell its shares for somewhere between $68 and $72 apiece.

Brinks is the latest company that Pirate has urged to explore a sale. In June, the hedge fund questioned Mirant's efforts to acquire NRG Energy and said the company should instead put itself up for sale.